The Institute for Supply Management recently reported that its purchasing managers’ index edged up to 53.5 in June from 52.8 in May. The ISM report showed factory orders and employment in June stood at their highest readings since December 2014. This is giving reassurance that US manufacturers ended the second quarter on a positive note with a strong flow of orders that could help boost the overall economy in coming months.
Many economists are optimistic for a solid second half of 2015. Even with the current global uncertainties, it appears that US manufacturing has gotten past the first-quarter drag of bad weather and shipping delays caused by the West Coast port slowdown. With the exception of manufacturers selling to the oil-and-gas drilling industry who have had to deal with the negative impact from falling oil prices which led energy companies to cut orders for equipment and supplies. The ISM employment index showed employers were hiring last month in anticipation for future production, now that order books are filling up.
Bruce Peacock
Vice President of Business Development
The Richmond Group USA